Real Estate Salesperson PSI Exam
Questions with correct Answers
the original 13 states - Answer- Legal descriptions using the government survey system
are NOT generally used in
Prior appropriation - Answer- Although states make specific laws governing water rights
and the rights in land that borders water, most states generally follow one of two basic
doctrines regarding water rights. In many states, the common law doctrine of riparian
and littoral rights dictates that water rights are automatically conveyed with property. In
others, all water rights are controlled by the state under the doctrine of
Severance - Answer- Real property can be converted to personal property by
Constructive notice - Answer- A judgment has been properly recorded. Any subsequent
purchasers, whether they have actually examined the record or not, have been given
Tenancy at will - Answer- A tenant rented an apartment, signing a 15-month lease. After
the lease expired, the tenant paid 1 month's rent and got a recipe. What kind of
leasehold does the tenant have?
his undivided interest passes to his heirs - Answer- The main difference between
tenancy in common and joint tenancy is that with tenancy in common, when co-owner
dies,
A license - Answer- A homeowner is willing to let his neighbor park an RV in his
backyard. HE does NOT want to make the permission permanent in case he dislikes
others who might move next door in the future. What should he give his neighbor?
A homeowner - Answer- A lawsuit for inverse condemnation may be brought by
Building codes - Answer- Ordinances that specify construction standards are
Projects the impact on the environments of a proposed project - Answer- An
Environmental Impact Statement (EIS)
All owners, present and future - Answer- A deed restriction is applicable to the activities
of
Conditional use permit or zoning variance - Answer- A landlord wishes to build a
neighborhood grocery store on a busy street in an area zoned for residential use. Which
of the following would MOST likely be used to obtain permission for this store?
, $250,000 - Answer- An appriser MUST be licensed or certified to handle Federally
related work on residential property valued at more than
Square footage of the subject - Answer- A competitive market analysis takes into
consideration
Functional obsolescence - Answer- If an older building cannot be air-conditioned, it is an
example of
A competitive market analysis to determine the property's value - Answer- A prospective
seller asks a salesperson to recommend a listing price for a property. The salesperson
should suggest
The original cost of the building - Answer- When preparing a market data estimate of
value, which of the following categories of adjustment is NOT essential?
The first sold - Answer- Three identical homes in a neighborhood were listed at the
same time in a market where demand was constant. According to the law of supply and
demand, which would have sold for the lowest price?
Most homes are larger than the sale home - Answer- According to the principle of
progression, a three bedroom one story home is MOST likely to bring the highest sales
price if located in a neighborhood in which
Setting a listing price - Answer- A competitive market analysis is MOST often used for
An insurance company - Answer- The FHA functions MOST like
A couple in their late 60's who need to tap their home equity to help cover their
expenses but do not want to sell their house - Answer- Which of the following
consumers would be able to derive the most benefit from a reverse mortgage?
More variety of loan programs available - Answer- In helping a buyer to select a lender,
if the buyer believes he has good credit and his income is documentable as a salary
and by tax returns, the licensee might recommend a mortgage banker, instead of a
mortgage broker, for all of the following reasons EXCEPT
Regulation Z - Answer- Federal Truth-in Lending laws are also known as
Prepayment penalties and rebates - Answer- According to the Truth-on-Lending Act, if
any "trigger terms" are used in an ad, all of the following disclosures MUST appear in
the ad EXCEPT the
Demand immediate payment of the entire note - Answer- A borrower has defaulted on
the mortgage. The mortgage contains an acceleration clause. This permits the lender to
Questions with correct Answers
the original 13 states - Answer- Legal descriptions using the government survey system
are NOT generally used in
Prior appropriation - Answer- Although states make specific laws governing water rights
and the rights in land that borders water, most states generally follow one of two basic
doctrines regarding water rights. In many states, the common law doctrine of riparian
and littoral rights dictates that water rights are automatically conveyed with property. In
others, all water rights are controlled by the state under the doctrine of
Severance - Answer- Real property can be converted to personal property by
Constructive notice - Answer- A judgment has been properly recorded. Any subsequent
purchasers, whether they have actually examined the record or not, have been given
Tenancy at will - Answer- A tenant rented an apartment, signing a 15-month lease. After
the lease expired, the tenant paid 1 month's rent and got a recipe. What kind of
leasehold does the tenant have?
his undivided interest passes to his heirs - Answer- The main difference between
tenancy in common and joint tenancy is that with tenancy in common, when co-owner
dies,
A license - Answer- A homeowner is willing to let his neighbor park an RV in his
backyard. HE does NOT want to make the permission permanent in case he dislikes
others who might move next door in the future. What should he give his neighbor?
A homeowner - Answer- A lawsuit for inverse condemnation may be brought by
Building codes - Answer- Ordinances that specify construction standards are
Projects the impact on the environments of a proposed project - Answer- An
Environmental Impact Statement (EIS)
All owners, present and future - Answer- A deed restriction is applicable to the activities
of
Conditional use permit or zoning variance - Answer- A landlord wishes to build a
neighborhood grocery store on a busy street in an area zoned for residential use. Which
of the following would MOST likely be used to obtain permission for this store?
, $250,000 - Answer- An appriser MUST be licensed or certified to handle Federally
related work on residential property valued at more than
Square footage of the subject - Answer- A competitive market analysis takes into
consideration
Functional obsolescence - Answer- If an older building cannot be air-conditioned, it is an
example of
A competitive market analysis to determine the property's value - Answer- A prospective
seller asks a salesperson to recommend a listing price for a property. The salesperson
should suggest
The original cost of the building - Answer- When preparing a market data estimate of
value, which of the following categories of adjustment is NOT essential?
The first sold - Answer- Three identical homes in a neighborhood were listed at the
same time in a market where demand was constant. According to the law of supply and
demand, which would have sold for the lowest price?
Most homes are larger than the sale home - Answer- According to the principle of
progression, a three bedroom one story home is MOST likely to bring the highest sales
price if located in a neighborhood in which
Setting a listing price - Answer- A competitive market analysis is MOST often used for
An insurance company - Answer- The FHA functions MOST like
A couple in their late 60's who need to tap their home equity to help cover their
expenses but do not want to sell their house - Answer- Which of the following
consumers would be able to derive the most benefit from a reverse mortgage?
More variety of loan programs available - Answer- In helping a buyer to select a lender,
if the buyer believes he has good credit and his income is documentable as a salary
and by tax returns, the licensee might recommend a mortgage banker, instead of a
mortgage broker, for all of the following reasons EXCEPT
Regulation Z - Answer- Federal Truth-in Lending laws are also known as
Prepayment penalties and rebates - Answer- According to the Truth-on-Lending Act, if
any "trigger terms" are used in an ad, all of the following disclosures MUST appear in
the ad EXCEPT the
Demand immediate payment of the entire note - Answer- A borrower has defaulted on
the mortgage. The mortgage contains an acceleration clause. This permits the lender to
